09 Aug Pricing Considerations for Outsourced Bookkeeping

If you’re looking to save some money through outsourcing non-core aspects of your business like your bookkeeping functions, but have never hired outsourced bookkeeping before, you may not know some important considerations regarding the pricing. Though there are many different accountants and bookkeepers whose services you can retain, all of whom have unique costs and fees, they end up being roughly equivalent to each other, based on a few factors. You need to consider how complex your operation is, the total volume of data flowing through the business that needs to be recorded, specific tax concerns, and more. Usually, bookkeepers tend to offer their services on an hourly basis, or at a fixed monthly price, depending on their preference.

Hourly bookkeeping – Fees are dictated when it comes to hourly bookkeeping arrangements primarily based on the demand and experience of the bookkeeper in question. Never be afraid to ask someone why they charge the fees they do; they should certainly be able to justify their cost. Sometimes you can find good deals; someone charging less than normal rates could be new to the area, and not have a lot of professional contacts to exploit. Conversely, they could be someone whose service or skill level isn’t up to par. It’s up to you to determine which!

Fixed monthly pricing – Other bookkeepers prefer to work on a fixed monthly basis. Most of the time, you can talk directly with the provider about what will be done for the cost, and set the pricing of their services as well. If you have questions, ask them to explain more clearly how they arrive at their cost; you will find that many times they devote time to conferences with you, or for preparing formal accounting statements that you may need around tax time.

Whether a prospective contractor works on an hourly or fixed price basis, the most important thing is that you clearly understand what you are buying. Outsourced bookkeeping services can help small and mid-sized businesses save lots of money, but you need to make sure you hire someone that will be a good fit for your organization.

Nate Nead is a licensed investment banker and Principal at Deal Capital Partners, LLC which includes InvestmentBank.com and Crowdfund.co. Nate works works with middle-market corporate clients looking to acquire, sell, divest or raise growth capital from qualified buyers and institutional investors. He is the chief evangelist of the company's growing digital investment banking platform. Reliance Worldwide Investments, LLC a member of FINRA and SIPC and registered with the SEC and MSRB. Nate resides in Seattle, Washington.